LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Private profit motive is an essential feature of Capitalism.

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Advantages of Cost-Benefit Analysis Correct Answer It aims at maximization of social welfare , In this principle, the problem of infinite target value does not arise Your Answer It aims at maximization of social welfare , In this principle, the problem of infinite target value does not arise , It Select The Blank Question The financing of ________ goods is done through public expenditure. Correct Answer public Your Answer public

Select The Blank Question The good becomes ________ so far as its use is concerned only when it is priced in the market and the principle o Correct Answer divisible Your Answer profitable

Select The Blank Question The chemical effluents recklessly released by a chemical factory in the river causing water pollution, is an example Correct Answer social Your Answer social Select The Blank Question In a market economy ________ is the best judge of personal interest. Correct Answer individual Your Answer individual Multiple Choice Single Answer Question Managerial economics refers to the integration of economic theory with business Correct Answer practices Your Answer practices Multiple Choice Single Answer Question The act of using goods and services available in the market to satisfy wants is called Correct Answer consumption Your Answer consumption

Multiple Choice Multiple Answer Question We say that a nation faces economic problems , under following conditions Correct Answer Man has unlimited wants or ends , The means or resources to satisfy them are limited , These resources ar Your Answer Man has unlimited wants or ends , The means or resources to satisfy them are limited , These resources are n Multiple Choice Single Answer Question A Joint- Stock Company is owned by its share holders but it is managed by Correct Answer Board of Directors Your Answer Board of Directors

Multiple Choice Single Answer Question For an economist, Tata Eng & Locomotive Company Ltd is a Correct Answer firm Your Answer firm True/False Question The registration of a partnership firm is voluntary Correct Answer True Your Answer True True/False Question There is no separation of ownership and management in case of a Joint Stock Company Correct Answer False Your Answer True Multiple Choice Multiple Answer Question A competitive industry has three basic characteristics Correct Answer Large Number of Firms , Homogeneous Product , Free entry and exit Your Answer Large Number of Firms , Homogeneous Product , Free entry and exit

Multiple Choice Multiple Answer Question The firm may be defined as Correct Answer an independently administered business unit , centre where the decisions about what to produce how to pro Your Answer an independently administered business unit , centre where the decisions about what to produce how to produ Select The Blank Question Sole Proprietorship which is also called sole ________ Correct Answer tradership Your Answer tradership Select The Blank Question Baumol has suggested as an alternative objective for profit maximization , the maximization of ________ Correct Answer sales Your Answer sales

Select The Blank Question The necessary condition of profit maximization of a firm is that Marginal Revenue (M.R) must be equal to _______ Correct Answer Marginal cost (M.C) Your Answer Marginal cost (M.C) Multiple Choice Single Answer Question The Risk Taking Theory was developed by Hawley, who was an Correct Answer American Economist Your Answer American Economist

Multiple Choice Single Answer Question If a person is habituated to the consumption of a commodity and if he cannot easily give up its use, demand for it i Correct Answer inelastic Your Answer inelastic

Select The Blank Question A fall in price tends the demand for goods to ________ Correct Answer expand Your Answer increase Multiple Choice Multiple Answer Question Demand Curve Correct Answer Is a graphical presentation , Slopes downward , Explain the relation between price and demand Your Answer Is a graphical presentation , Slopes downward , Explain the relation between price and demand Multiple Choice Multiple Answer Question Methods of forecasting demand for new products are Correct Answer Product life cycle analysis , Test marketing , Evolutionary approach Your Answer Product life cycle analysis , Test marketing , Evolutionary approach Multiple Choice Single Answer Question Q = f ( N, L, K, T ) , this algebraic expression is used for Correct Answer Production Function Your Answer Production Function

True/False Question In the traditional concept of equilibrium, a firm attains the equilibrium when the firms Total Revenue (T.R.) =Total C Correct Answer False Your Answer False True/False Question In case of decrease in supply, the supply curve shifts to left side of the original supply curve. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The important determinants of supply are Correct Answer Always referred to in relation to price & time , Government policy , Availability of factors of production Your Answer Always referred to in relation to price & time , Government policy , Availability of factors of production Multiple Choice Multiple Answer Question Major types of costs are Correct Answer Accounting costs , Economic costs , Opportunity costs Your Answer Economic costs , Opportunity costs , Substitution cost Select The Blank Question The law of constant returns to scale is depicted by the marginal output curve which is ________. Correct Answer horizontal Your Answer downward sloping Select The Blank Question The costs which cover the cost of advertising is ________. Correct Answer Selling cost Your Answer Selling cost Select The Blank

Question By ' profits', the accountant means total revenue minus________. Correct Answer Explicit costs Your Answer Fixed costs Multiple Choice Single Answer Question The number of sellers operating under monopolistic competition as compare to oligopoly is Correct Answer larger Your Answer fewer Multiple Choice Single Answer Question Dalal Street in Bombay is known as Correct Answer Bombay Stock Exchange Your Answer Bombay Stock Exchange Multiple Choice Single Answer Question Price of a product under perfect competition is determined by the interaction of total supply and Correct Answer total demand Your Answer total demand Match The Following Question Correct Answer Your Answer Excess capacity monopolistic competition monopolistic competition

Public enterprises may incur some social costs which private enterprise may not bear at all. which private enterprise may not b

The buyers and sellers may be away from each other and yet they may constitute a market over telephone or through internet Under perfect competition, it is assumed that the cost of transportation does not exist cost of transportation does exist

Match The Following Question Correct Answer Your Answer Intuitive pricing psychological & subjective approach psychological & subjective approach Experimental pricing selection of sample tests markets selection of sample tests markets Price leadership Oligopoly Oligopoly Surgical equipment Refusal pricing Refusal pricing

Multiple Choice Multiple Answer Question Features of the firm are Correct Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint st Your Answer It is a business unit organized under one ownership , It is a sole proprietorship , It is a partnership or joint stoc

Multiple Choice Multiple Answer Question Under cost plus pricing Correct Answer The price is set to cover material, labour cost , Actual costs, standard costs are included , Certain percentag

Your Answer The price is set to cover material, labour cost , Actual costs, standard costs are included , Certain percentage Multiple Choice Single Answer Question J.M. Keynes' economic analysis come under Correct Answer macro analysis Your Answer macro analysis True/False Question Inflation is characterized by excess of demand. Correct Answer True Your Answer True True/False Question Pure inflation starts only after reaching the full employment level. Correct Answer True Your Answer False

True/False Question In macro economic analysis the behavior of economic agents such as firms, households and government is see Correct Answer True Your Answer True Multiple Choice Multiple Answer Question According to Keynes there are three motives for holding cash for liquidity preference Correct Answer the transactions motive , the precautionary motive , the speculative motive Your Answer the transactions motive , the speculative motive , the profit motive Multiple Choice Single Answer Question Liability of a sole trader is Correct Answer unlimited Your Answer unlimited

True/False Question Under the New Industrial Policy, inorder to invite foreign investment in high priority industries, it was decided to pro Correct Answer True Your Answer True True/False Question Capitalism emphasis more on turnover rather than creating profits Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Causes for rise in prices in India Correct Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money Your Answer Mounting government expenditure , Deficit financing and increase in money supply , Role of black money

arget value does not arise , It shows the measures necessary for attaining maximum net wealth et value does not arise , It shows the measures necessary for attaining maximum net wealth

market and the principle of exclusion is applied to it.

er pollution, is an example of ________ cost.

mited , These resources are not specific but have alternative uses d , These resources are not specific but have alternative uses

what to produce how to produce are taken , a business unit, which hires resources for production at to produce how to produce are taken , a business unit, which hires resources for production

ion of ________

must be equal to ________.

up its use, demand for it is generally

e and demand nd demand

al Revenue (T.R.) =Total Cost (T.C.).

actors of production ors of production

ivate enterprise may not bear at all.

phone or through internet yet they may constitute a market over telephone or through internet

rtation does exist

is a partnership or joint stock company a partnership or joint stock company

cluded , Certain percentage of profit also included

ded , Certain percentage of profit also included

ds and government is seen in total, disregarding details at particular level.

tries, it was decided to provide approval for direct foreign investment upto 51 %equity in such industries

y , Role of black money Role of black money

LIST OF ATTEMPTED QUESTIONS AND ANSWERS Multiple Choice Single Answer Question Pure public goods are subject to the law of decreasing average cost, because of the Correct Answer economies of scale Your Answer economies of scale

Multiple Choice Single Answer Question In the cost - benefit analysis, after formulating various alternative project capacity, each of them has to be examine Correct Answer feasibility Your Answer feasibility True/False Question Bargaining is one of the remedies of corrective action. Correct Answer False Your Answer True Match The Following Question Correct Answer Your Answer Defence service Indivisible Indivisible Economic effects of public goods are Spill over effect Spill over effect Selection or implementation Step of cost benefit analysis Step of cost benefit analysis Production possibility frontier Maximization of output Maximization of output

Multiple Choice Multiple Answer Question The advantage of cost-benefit analysis are Correct Answer Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference betwee Your Answer Maximization of social welfare , Objective measurement of the trade-off , Maximization of difference between t Multiple Choice Multiple Answer Question The term externalities may also be referred as: Correct Answer Spill-over effects , Neighborhood effects , Third party effects Your Answer Spill-over effects , Neighborhood effects , Third party effects Select The Blank Question Modern economists treat social cost and benefits as ________ of private investment and production decisions. Correct Answer externalities Your Answer disadvantages Select The Blank Question Economists like A.C.Harberger have shown that the cost benefit analysis can be applied to ________ analysis. Correct Answer general equilibrium Your Answer general equilibrium

Select The Blank Question In the context of formulating an investment project, ________ feasibility means the availability of supervisors for im

Correct Answer management Your Answer management Select The Blank Question Prof. Sam Nelson calls risks from unsafe factories or nuclear power plants as ________ economies. Correct Answer negative Your Answer hazardous Multiple Choice Single Answer Question According to Lionel Robbins, "Economics is a science which studies Correct Answer human behavior Your Answer social behavior Multiple Choice Single Answer Question Question related to the efficient production and allocation belong to the branch of economic theory called Correct Answer Welfare Economics Your Answer Business Economics

Multiple Choice Multiple Answer Question Managerial economics deals with Correct Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , Your Answer Integration of economic theory with business practice , Using logic of economics, mathematics & statistics , Th Multiple Choice Single Answer Question The public sector is owned & controlled by Correct Answer state enterprises Your Answer state enterprises Select The Blank Question Reasonable profit target as an alternative to the objective of profit maximization was suggested by ________. Correct Answer Joel Dean Your Answer Joel Dean Select The Blank Question Homeostatic Approach as an alternative objective of firms was suggested by ________. Correct Answer Prof. Kenneth Boulding Your Answer Prof. Kenneth Boulding Select The Blank Question The form of organization which is best for self employment is ________. Correct Answer Sole trader Your Answer Sole trader True/False Question Accounting profit takes in to account opportunity cost. Correct Answer False Your Answer False Multiple Choice Single Answer Question Complementary goods are demanded Correct Answer jointly

Your Answer jointly Multiple Choice Single Answer Question If the substitutes are relatively costly then the demand for the commodity in question will be Correct Answer more Your Answer same True/False Question There are no real exceptions to the law of demand Correct Answer False Your Answer False True/False Question Demand curve slopes downwards from left to right. Correct Answer True Your Answer True Select The Blank Question An upward sloping demand curve is called ________ Correct Answer exceptional demand curve Your Answer exceptional demand curve Select The Blank Question Goods which are paradoxical to the law of demand are ________ Correct Answer Giffen goods, , Your Answer Giffen goods, , Match The Following Question Correct Answer Your Answer Normally the isoquant slopes upward from right to left. downward from right to left Any straight line supply curve which cuts y axis will have zero elasticity of supply. perfectly elastic The market period supply curve for perishable commodities is perfectly inelastic. perfectly inelastic. A rightwards shift in supply schedule indicates an increase in supply. an increase in supply.

Multiple Choice Multiple Answer Question Explicit costs are Correct Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs Your Answer Out of pocket costs , These are firms accounting expenses , Expenditure costs Select The Blank Question Output rises in a lesser proportion to that of the increase in input, under the case of ________. Correct Answer decreasing returns to scale Your Answer decreasing returns to scale Select The Blank Question The cost which enter the accounts book of the firm are referred as ________.

Correct Answer Accounting cost Your Answer Accounting cost Multiple Choice Single Answer Question Jevons' , the economists who defined the term 'market' different from that of the traditional sense is an Correct Answer English economists Your Answer English economists Multiple Choice Single Answer Question Economists have pointed out that the real world is full of Correct Answer Imperfect competition Your Answer Imperfect competition True/False Question A firm under perfect competition is a price maker. Correct Answer False Your Answer False True/False Question Under perfect competition single seller can influence the price. Correct Answer False Your Answer False Multiple Choice Multiple Answer Question Types of imperfect competition are Correct Answer Monopoly , Duopoly , Oligopoly Your Answer Monopoly , Duopoly , Oligopoly Multiple Choice Multiple Answer Question Features of Pure Competition are Correct Answer Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms Your Answer Large number of buyers and sellers , Homogeneous products , Free entry and free exit of firms Multiple Choice Multiple Answer Question Equilibrium is the stage of Correct Answer maximum satisfaction , balance , stationary Your Answer maximum satisfaction , balance Multiple Choice Single Answer Question Inflation is a phenomena in which prices Correct Answer rise Your Answer rise Multiple Choice Single Answer Question True inflation starts only after reaching the level of full Correct Answer Employment Your Answer Employment True/False Question During inflation, the pensioners whose income is permanently fixed, are substantially benefited. Correct Answer False

Your Answer False True/False Question Saving is a private virtue Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question According to Keynes, Aggregate supply function refers to Correct Answer the minimum price of revenue which the entrepreneurs must get , Associated with different levels of employ Your Answer the minimum price of revenue which the entrepreneurs must get , Associated with different levels of employme

Multiple Choice Multiple Answer Question Marginal Propensity to consume is characterized as follows Correct Answer It is defined as the ratio of the change in consumption to the change in income , It is rate of change in the av Your Answer It is rate of change in the average propensity to consume as income changes , It is derived by the formula mpc Multiple Choice Single Answer Question During the period of depression various factors of production are Correct Answer exhausted Your Answer unutilized

True/False Question In general SBI uses its monetary policy to achieve a judicious balance between the growth of production and contr Correct Answer False Your Answer False True/False Question Public enterprises have shown a very high rate of return of the capital invested Correct Answer False Your Answer False

Multiple Choice Multiple Answer Question The meaning of monetary policy is Correct Answer It is programmed of the central bank , It controls the total supply of money , The basic objective is to achieve Your Answer It is programmed of the central bank , It controls the total supply of money , The basic objective is to achieve e

Multiple Choice Multiple Answer Question Main aims of the New Industrial Policy (1991) are Correct Answer To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To intro Your Answer To unshackle the indian industrial economy from the cobwebs of unnecessary bureaucratic control , To introdu

Multiple Choice Multiple Answer Question Objectives of economic policy are Correct Answer To increase the efficiency and international competitiveness of industrial production , To improve the perform Your Answer To increase the efficiency and international competitiveness of industrial production , To improve the performa

of them has to be examined in terms of its

ation of difference between total benefits & total costs on of difference between total benefits & total costs

d production decisions.

to ________ analysis.

ability of supervisors for implementing and running the project smoothly and professionally.

economies.

mic theory called

mathematics & statistics , The use of economic modes of thought to analyze business solution thematics & statistics , The use of economic modes of thought to analyze business solution

gested by ________.

al sense is an

e exit of firms

different levels of employment , Explains that the level of out put varies with the level of employment fferent levels of employment , Explains that the level of out put varies with the level of employment

is rate of change in the average propensity to consume as income changes , It is derived by the formula mpc= change in c/change in y erived by the formula mpc= change in c/change in y , It is derived by dividing the change in income by change in the consumption expendit

wth of production and control of the general price level.

asic objective is to achieve economic stability c objective is to achieve economic stability

eaucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions o ucratic control , To introduce liberalization with a view to integrate the indian economy with the world economy , To remove restrictions on d

on , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector , To improve the performance and rationalize the scope of the public sector , To reform and modernize the financial sector

hange in c/change in y the consumption expenditure

, To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act To remove restrictions on direct foreign investment as also to free the domestic entrepreneur from the restriction of MRTP act

ncial sector

n of MRTP act f MRTP act